Why You Still Need Condo Insurance?

What Is Strata Insurance in Canada?

Strata insurance (also called condominium corporation insurance or master policy) is a policy held by the strata or condo corporation that covers shared property and common areas in a condominium or strata-titled building.

🏢 What Strata Insurance Covers

Strata insurance generally covers the shared property and common areas of the building. Here’s what’s typically included:

• Building Structure
  Covers the physical structure of the building, including exterior walls, foundation, roof, and (often) windows.

• Common Areas
  Includes shared spaces such as hallways, lobbies, stairwells, elevators, parking garages, recreational rooms, and gyms.

• Shared Systems
  Covers central systems that serve multiple units, like plumbing, electrical, and HVAC systems.

• Standard Unit Fixtures
  In some cases, it includes original fixtures and finishes that came with the unit as per the strata’s standard unit definition (e.g., builder-grade flooring or cabinetry).

• Liability Coverage for Common Areas
  Provides protection if someone is injured in a common area of the building, such as a visitor slipping in the lobby.

Why You Still Need Condo (Strata Unit Owner’s) Insurance?

While the strata policy covers the building and common areas, it does NOT cover your personal unit, belongings, personal liability, and the portion of the strata policy's deductible you may be responsible for. That’s where condo insurance comes in.

🛡️ What Condo Insurance Covers

Condo insurance (also known as strata unit owner’s insurance) is designed to protect your individual unit and personal liabilities. Here’s what it typically includes:

• Personal Property
  Covers belongings inside your unit such as furniture, clothing, electronics, and appliances.

• Unit Improvements and Upgrades
  Protects betterments made to the unit, like upgraded flooring, custom cabinets, or high-end countertops.

• Strata Deductible Assessments
  Covers your share of the strata corporation’s deductible if a claim originates from your unit (e.g., water damage) and you're held responsible.

• Personal Liability
  Protects you if someone is injured in your unit or if you accidentally cause damage to someone else’s property (e.g., water leak into a neighbor’s unit).

• Additional Living Expenses
  Pays for temporary housing if your unit becomes uninhabitable due to an insured loss (e.g., fire or water damage).

🚫 Without Condo Insurance, You Risk:

• Paying out-of-pocket for damage to your own unit

• Being charged thousands for a strata deductible (which can be $25,000–$250,000+)

• No protection for your personal belongings

• No coverage for temporary living expenses

In Summary:

Strata insurance covers the building structure and common areas shared by all unit owners, but it does not protect your individual unit, belongings, or personal liability. That’s why condo insurance is essential—it fills the gap by covering your personal property, any upgrades to your unit, your share of strata deductibles, and liability for accidents or damages that occur within your unit. Together, strata and condo insurance provide complete protection for condo owners.